Superior investment strategies, asset protection and estate planning are just a few ways we make it easier for you to enjoy life. We’ve answered a few of the more common questions here. If something isn’t covered, please contact us and we’ll get it answered.
No. Many of our clients choose trust arrangements because of the unique advantages they offer, but you are not required to create a trust. If you prefer, we can work together on an investment management basis only. We’ll create a simple letter of instructions stating that you are designating Capital City Trust Company to act as your investment agent.
Not at all – it can be done in just two steps. First, you transfer the securities and/or deposits to Capital City Trust Company for management and oversight. Then you give us your written instructions in the form of a trust agreement. The agreement – drawn up by an attorney – is signed by you (as creator of the trust) and by Capital City Trust Company (as trustee). These are often called “living trusts” to distinguish them from testamentary trusts (those established under the terms of a will). Living trusts created for the purpose of personal asset management are also known as “revocable trusts,” because the person who creates the trust reserves the right to cancel or revoke it.
Yes. You are assured of this in three ways according to what the trust agreement specifies:
- That you can make withdrawals (or additions) at any time.
- That you reserve the right to cancel the trust.
- That you reserve the right to give us new or different instructions by amending the trust agreement.
Some of our clients like to take active participation, such as selecting particular stocks or bonds. However, most of our clients value our unbiased approach to portfolio management because they lack the time or specialized knowledge that it requires. Still, you can delegate as much or as little investment responsibility as you want. It’s your trust.
There are also hybrid approaches:
- You might spell out your goals and requirements in some detail, then leave the selection of specific investments to us as trustee.
- You could ask us to submit each proposed investment change for your approval until you're satisfied that we're interpreting your wishes accurately.
- You might ask us to submit recommendations while also researching some opportunities on your own.
With a trust, you make the rules.
No. Our fees are competitive with those charged by investment advisory firms (although theirs may not include custodianship of securities, recordkeeping and other conveniences that we offer) or mutual funds.
If you think “millions of dollars” when you hear the word “trust,” you're the victim of a common misconception. Today's trust institutions have developed ways to handle even relatively small trusts efficiently. In any case, we don't think in terms of fixed minimums. Instead we ask ourselves, "Is a trust the best way to meet this client's financial management needs?"
To find out whether a trust would be right for you, please contact us and we’ll explore your options.
That depends on your goals—current income, long-term growth to offset inflation or some balance of the two—and on ever-changing investment conditions.
Over roughly the past 85 years, diversified portfolios of good-quality stocks have produced an average total annual return (dividends plus growth in principal value) around 9.8%. Bonds have produced somewhat lower returns overall, but they sometimes offer a higher level of current income than stocks.
Although past performance is no guarantee of future results, our goal as trustee is to provide reasonably consistent returns over the years. We emphasize careful asset allocation, the selection of quality investments and constant vigilance.
Experience is the most important criteria. You should look for a person or financial organization, such as Capital City Trust Company, with experience in a variety of market changes and handling diverse family needs. You want the type of experience that will provide the greatest financial security for you and your family. Your trustee should have financial strength as well as professional investment capabilities. The trustee should participate in the financial markets every day, ideally with trusteeship being considered a full-time job.
That's easy. Our trust and investment professionals can provide a more personal introduction to trusts after hearing more about your individual circumstances. Please contact us and we’ll be happy to arrange a phone call or in-person consultation.